Do individuals who establish lottery agents have to pay tax in Vietnam?

Do individuals who establish lottery agents have to pay tax in Vietnam?

Pursuant to Article 2 of Circular 40/2021/TT-BTC stipulating that taxpayers are as follows:

1. Household businesses, individual businesses that are residents having activities manufacture, sale of goods and services (hereinafter referred to as “business operation”) in any of the business lines and sectors prescribed by law, including the following cases:

a) Independent practitioners in the business lines or sectors under licenses or practice certificates as prescribed by law;

b) Lottery agents; insurance agents, multi-level marketing (MLM) agents of individuals that directly sign commission agent contracts with lottery enterprises, insurers, MLM enterprises respectively;

c) Business cooperation with organizations;

d) Agricultural production and business, forestry, salt production, aquaculture that are not eligible for tax exemption as prescribed by value-added tax (VAT) laws and personal income tax (PIT) laws;

dd) E-commerce, including individuals earning incomes from provision of digital products or services as prescribed by e-commerce laws.

2. Household businesses and individual businesses having business operation at bordering markets, checkpoint markets, markets within border-gate economic zones in Vietnam;

3. Individuals leasing out their property

4. Individuals transferring Vietnam’s top-level domains “.vn”;

5. Organizations having business cooperation with individuals;

6. Organizations and individuals declaring and paying tax on behalf of other individuals;

7. lottery enterprises, insurers, MLM enterprises paying individuals who directly sign commission agent contracts with them;

8. Tax authorities, state authorities; relevant organizations and individuals.

According to this Article, with the above regulations in Vietnam, when you cooperate with your friend to do lottery business but have revenue to the extent that you have to pay tax, you must pay tax according to regulations.

What are regulations on amount of taxable revenue in Vietnam?

Pursuant to Article 4 of Circular 40/2021/TT-BTC stipulates tax calculation rules as follows:

1. Rules for calculating tax payable by household businesses and individual businesses shall comply with applicable regulations of law on VAT, TIN and relevant legislative documents.

2. A household business or individual business whose revenue from business operation in the calendar year is not exceeding 100 million VND shall not be required to pay VAT and PIT as prescribed by VAT and PIT laws. Household businesses and individual businesses shall declare tax truthfully and accurately; submit tax documents punctually; take legal responsibility for the accuracy, truthfulness and adequacy of the tax documents submitted.

3. For household businesses and individual businesses in the form of groups of individuals or households, the revenue of not exceeding 100 million VND/year as the basis for exemption from VAT and PIT shall be determined for 01 representative of the group of individuals of household in the tax year.

Thus, household businesses and individual businesses in Vietnam, if their revenue from business operation in the calendar year is not exceeding 100 million VND, they must pay value-added tax and personal income tax as prescribed.

Best Regards!